Delta Airlines (give it) – Get a free report Shares rose in premarket trading ahead of the airline’s third-quarter earnings before the opening bell.
Analysts expect Delta to post an adjusted bottom line of $1.94 per share, up 28% from last year’s levels, with revenue up about 13% to $14.54 billion as the airline continues to benefit from the continued increase in post-pandemic travel.
Delta itself forecast third-quarter revenue growth of between 11% and 14% with earnings in the range of $2.20 to $2.50 per share.
For the full year, the airline said it expects earnings in the region of $6 to $7 per share, a $1 improvement from its previous forecast, while reiterating its target of $3 billion in cash flow. free.
Investors will also focus on the group’s overall cost base, which is expected to face pressure from the recent oil surge that has driven up jet fuel prices. Delta’s adjusted fuel spend was pegged at $2.5 billion during the second quarter, with prices estimated at around $2.52 per gallon.
However, that price is expected to rise during the three months ending in September, and possibly beyond, due to elevated global crude oil levels linked to the conflict between Israel and Hamas in Gaza and production cuts implemented by Saudi Arabia and Russia.
Management is also likely to address the impact of a recent decision by Pratt & Whitney-owned RTX. (RTX) – Get a free report recall up to 700 Airbus aircraft engines, some of them operated by Delta, due to a powder defect identified last month.
Delta Air Lines shares rose 0.75% in pre-market trading to indicate an opening price of $36.10 each.
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